Lower interest rates are a mixed bag for the average consumer. On the one hand, it means we’ll earn less on safe havens for our money, whether that’s savings accounts or certificates of deposit. But it also is likely to mean our borrowing costs will be lower. That’s why rate cuts are touted as an economic stimulus. […]
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Will an interest rate cut of 75 basis points be enough to stabilize the market? That depends in large part on how the financial sector responds. Banks and mortgage companies have led the slowdown, running up huge losses from bad loans. With interest rates at 3.5 percent, many of those banks will be able to […]
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The Fed may have been slow to react to worsening market conditions, but give them credit for acting when they did. In early trading, the Dow Jones Industrial Average is down about 150 points, a decline of less than 4 percent. We’ve seen a lot worse. Remember 1987? A decline of that magnitude in today’s […]
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As world markets reeled, the Federal Reserve called an emergency meeting last night and agreed to slash U.S. interest rates by three-fourths of a percent. The market’s reaction? Too little too late. Is it too early to begin speculating how long Ben Bernanke will remain Fed chairman? He’s been behind on the implications of the […]
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Getty Images Grassley: What is the SEC doing over there? The Securities and Exchange Commission can’t follow up on tips about illegal trading, even when another regulator does the work for them. A report released today (PDF file) by the General Accounting Office found that the SEC’s database doesn’t allow investigators search by the names […]
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Katherine Burton If you thought the credit crunch would bring the private equity game to a close, think again. As more companies struggle to obtain affordable financing, hedge funds will be circling, ready to snap up bargains as they become distressed. If you’re wondering who these people are who manage billions of other people’s money […]
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